Ethics of stock option backdating
D., Assistant Professor of Accounting at Stanford University's Graduate School of Business is the speaker for this timely new session scheduled for Tuesday, September 12, - PM. Sentencing Commission and highly regarded corporate ethics and compliance thought leaders together with compliance professionals on the front line of corporate compliance and ethics.
On Tuesday, September 12, from - PM, Professor Alan D. will present "Corporate Compliance Departments and Conducting Compliance Risk Assessments - Benchmarks and Methodologies from Leading Corporations" at a pre-conference on Monday, September 11, - p.m. Corporate compliance professionals and ethics and business conduct professionals are generally responsible for developing and overseeing corporate compliance and ethics programs to ensure their organization's compliance with regulations governing their industry. Call Diane Abels at 888-277-4977 or Margaret Dragon at 781/593-4924 to receive the Press Registration Form.
Utilitarianism or consequentialism argues that the ethically correct decision must be of benefit backdating most shareholders in the long-term.
Backdating stock options repricing the at the expense of the other shareholders.
In addition, consistent with this interpretation, the occurrence of government investigations or delisting notices have no incremental explanatory power, after controlling for firms’ likely culpability.
We find that the losses are attenuated when tainted management of less successful firms is more likely to be replaced.
Repricing activities undermine the incentive justification for use of stock option plans.
This landmark conference, packed with timely and essential information, will bring hundreds of corporate compliance, governance and ethics leaders to the Chicago Downtown Marriott on September 11-13, 2006. For the Compliance & Ethics Institute the SCCE has assembled an international panel of experts to address a myriad of national and global compliance and ethics concerns. Attorney, Eastern District of Pennsylvania James G. -- Winner of SCCE's 2006 International Compliance Award and Director, Center for Business & Professional Ethics, University of Pretoria (S. Sentencing Commission, Michael Horowitz -- Boeing VP Ethics and Business Conduct, Martha Ries -- Kraft Chief Counsel--Global Compliance, Theodore Banks -- Qwest Communications Chief Compliance Officer, David Heller And more! executive search firm, listed Chief Compliance Officer third among their Top 10 Hot Jobs for 2005.A series of multivariate show that measures we expect to be related to the effect of the scandal on the value of firms’ reputational capital and information risk are significantly related to changes in shareholders’ wealth.Conversely, variables one would expect to be related to the magnitude of direct out-of-pocket expenses, namely the number of past grants and/or their value, are not significantly related or are positively related to shareholders’ wealth effects, inconsistent with the direct cost hypothesis.As such, preferential treatment through the backdating of stock options is inappropriate and unethical.
Their inside knowledge discriminates against all stock other shareholders who do not know the good or bad news.From a deontological perspective, backdating and repricing are akin to lies the the intention is to manipulate and backdating the other Deontology does not accept that the end justifies the means.Furthermore, it does not allow exceptions to a rule.Spring-loading and backdating treat one category of shareholders stock differently than the other category of shareholders all the current and future shareholders.